Stock Pick

  • 3 high quality ASX blue chip shares to buy in June

    asx blue chip shares

    Are you looking to add a few ASX blue chip shares to your portfolio in June? The good news is there are plenty of quality options to choose from right now.

    To narrow things down, I’ve picked out three ASX blue chip shares which I believe offer compelling risk/rewards. They are as follows:

    Goodman Group (ASX: GMG)

    The first ASX blue chip share to consider buying is Goodman Group. I think the integrated commercial and industrial property group is a great option due to the strength and positive outlook of its portfolio. This is largely due to its exposure to industries benefiting from structural tailwinds like ecommerce. I expect these assets to be in demand for a long time to come and underpin solid earnings and distribution growth over the next decade.

    ResMed Inc. (ASX: RMD)

    ResMed is another ASX blue chip share which I would buy today. I think the medical device company is a great buy and hold option due to the proliferation of sleep apnoea. Education around this sleep disorder is increasing and looks likely to lead to greater numbers of diagnoses over next decade. This should mean that demand for ResMed’s industry-leading sleep treatment solutions continues to grow and drives strong earnings growth

    SEEK Limited (ASX: SEK)

    A final ASX blue chip share to consider buying is SEEK. I’m a big fan of the job listings company due to its market-leading ANZ business and its rapidly growing China-based Zhaopin business. While a lot of investor focus is on its ANZ business, I would argue that the real star is Zhaopin. In the first half it contributed 47.8% of total revenue. This compares to the ANZ business, which accounts for 25.6% of its revenue. Given how lucrative the China market is, I believe Zhaopin will underpin strong growth for many years to come once the crisis passes.

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    Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia has recommended ResMed Inc. and SEEK Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post 3 high quality ASX blue chip shares to buy in June appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/3dtIJtx

  • Tesla’s Outlook Starting to Clear up With ‘Fremont Engines Running,’ Says 5-Star Analyst

    Tesla’s Outlook Starting to Clear up With ‘Fremont Engines Running,’ Says 5-Star AnalystWhen looking at V-shaped recoveries, they hardly come more V-shaped than that of Tesla’s (TSLA). Hitting all-time highs in February, then plummeting along with the rest of the market, the EV pioneer’s fortunes appear to be speeding upwards yet again, as the swift recovery has led Tesla stock to a year-to-date gain of 115%.According to Wedbush analyst Daniel Ives, the moving parts are all falling into place for Tesla. The fact that Fremont is up and running again following the resolution of the Musk vs Alameda County quarrel combined with strong demand in China for Model 3 vehicles suggest a “solid May and June likely in the cards and clear momentum heading into 2H.”That said, it is China and the attendant opportunity that is mostly on Ives’ mind. The 5-star analyst believes the China growth story is “worth $300 per share to the stock.”In a difficult pandemic-driven environment, Chinese demand for Model 3s remains “a ray of light” for Tesla, with the Shanghai-based Giga 3 factory seemingly on the path to deliver 100,000 Model 3 units in its first fully operational year.Ives argues there is increasing demand for electric vehicles in China, and maintains “EV penetration is set to ramp significantly over the next 12 to 18 months,” with Tesla competing for market share supremacy along with several local and international rivals.Looking ahead, Ives said, “The Street will be closely monitoring demand trends across Europe and China over the coming month as the focus of investors shifts to a more normalized (depending on COVID) environment heading into year-end and 2021 and what this dynamic means for the long-term earnings trajectory going forward.”At this point, however, Ives prefers to watch this bullish story play out from the sidelines. The analyst keeps a Neutral rating on TSLA, although the price target gets a significant bump – moving up from $600 to $800. Despite the increase, the target still indicates possible downside of 9%. (To watch Ives’ track record, click here)Opinion on the Street regarding Musk & Co is almost evenly split. 9 Buys and Holds each, along with 10 Sells add up to a Hold consensus rating. However, it appears most believe Tesla has surged enough for now, as the average price target comes in at $633.14, and implies the analysts expect shares to drop by 28% over the next 12 months. (See Tesla stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

    from Yahoo Finance https://ift.tt/2zVg9CT

  • Why I would buy and hold these quality ASX dividend shares

    ASX dividend shares

    This year the pandemic has led to a large number of dividend cuts, suspensions, and cancellations.

    While this is disappointing, I believe there are plenty of opportunities for income investors that can afford to be patient.

    Two ASX dividend shares that I believe would be great buy and hold options are listed below:

    Commonwealth Bank of Australia (ASX: CBA)

    The first ASX dividend share to consider buying is Commonwealth Bank. Although they have rebounded strongly from their lows, the shares of Australia’s largest bank are still down materially from their 52-week high. This has been driven by concerns over the future economic damage caused by the pandemic.

    While the pandemic will certainly have an impact on the economy and bad debts, I’m optimistic that stimulus and a swifter than expected reopening could mean the damage is not as great as first feared. As a result, I feel the worst could be behind Commonwealth Bank now. And although I suspect a dividend cut to ~$3.70 per share is coming next year, I’m increasingly confident this is the bottom of the cycle. This dividend equates to a fully franked 5.8% FY 2021 yield.

    Sydney Airport Holdings Pty Ltd (ASX: SYD)

    Another ASX dividend share to consider buying with a long term view is Sydney Airport. The airport operator’s shares have been hit hard during the pandemic for obvious reasons. However, with domestic tourism expected to start its recovery in the coming months and international tourism to follow in 2021, I don’t think it will be long until a growing number of travellers are passing through its terminals again.

    It will take time before passenger numbers return to normal levels. However, I’m optimistic that things will be close to normal by the end of 2022. I expect it to be a similar case for its dividends over the next couple of years. I wouldn’t expect one to be paid this year, but in FY 2021 I estimate a 29 cents per share dividend and in FY 2022 I feel a 37 cents per share dividend could be possible. This represents yields of 4.9% and 6.25%, respectively.

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post Why I would buy and hold these quality ASX dividend shares appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/3gNFoHX

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